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FG Expands Subsidised Rice Programme to States Amid Food Crisis

The Federal Government is expanding its subsidised rice programme to tackle food insecurity, with sales set to begin in Lagos, Kano, and Borno states, according to a director at the Federal Ministry of Agriculture and Food Security on Monday.

This initiative follows the launch of the subsidised rice programme in Abuja in early September by the Minister of Agriculture and Food Security, Abubakar Kyari. The programme aims to make rice more affordable, with a 50kg bag of subsidised rice selling for N40,000, significantly below the current market price, which is as high as N90,000 to N100,000 in some areas.

As part of the programme, the government is distributing 30,000 metric tonnes of rice, equivalent to 1,000 trucks carrying 600 bags each. “We are set to activate Lagos and Kano for the sales shortly, and Borno State will also follow,” the agriculture ministry official disclosed, requesting anonymity due to a lack of authorisation to speak publicly.

Addressing concerns that the rice sales in Abuja had been halted, the official dismissed these claims, stating, “We haven’t even reached the halfway mark; the sales are ongoing, and we’re engaging other states.”

Another ministry official noted that civil servants in Abuja, particularly in areas surrounding federal ministries, have benefited from the subsidised rice. However, there have been challenges at the National Agricultural Insurance Corporation (NAIC) sales centre, where difficulties with crowd control and public cooperation have hampered smooth operations.

“At the NAIC centre, some individuals refused to follow the established protocols, which made it difficult to manage the process,” the official explained, adding that some buyers were attempting to hoard the rice and resell it in markets, undermining the programme’s intent.

Despite these issues, the official remained optimistic, saying, “We are committed to ensuring that low-income earners, who are the primary beneficiaries, can access this vital resource.”

The expansion of the rice subsidy programme is part of the government’s broader strategy to combat food scarcity and make essential staples more affordable for Nigerians, particularly in light of rising food prices and the weakening Naira.

According to the National Bureau of Statistics, food inflation hit 37.52% year-on-year in August 2024, compared to 29.34% in August 2023. The depreciation of the Naira has worsened the situation, with the FMDQ Securities Exchange Limited reporting a closing rate of N1540.78/$ on September 27, 2024, while the dollar sold for over N1700 in some black markets in Abuja.

In a related development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reiterated during a press conference marking Nigeria’s 64th Independence Day that the country must move away from relying on food imports. Edun emphasised that food self-sufficiency is central to the government’s economic recovery plan.

“We should not be importing food,” Edun stated. “It is essential that we support domestic food production and avoid flooding the market with imports, which could disrupt local agriculture.”

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